Do Safety Features Lower Your Car Insurance Rates?

It seems like every new car model has some kind of new or better technology that makes driving easier or safer. These new features play a large part in reducing auto accidents and injuries on the road.

Nowadays, many auto insurance companies offer policy discounts for some safety features in cars. But which ones are the most useful or safe? Let’s look at some of the safest and best safety features for cars on the market right now that can help you save money on your insurance.

Buying a new car is an exciting experience You get to test drive different models, pick out the color and trim packages, and take advantage of the new car smell But one important consideration many car buyers overlook is how safety features can impact insurance rates. Advanced driver assistance technologies like automatic emergency braking, lane departure warning, and blind spot monitoring are becoming more common. Do these high-tech features actually help lower your car insurance premiums? Let’s take a closer look.

How Safety Features Prevent Accidents

Improved safety technologies in newer model vehicles help drivers avoid collisions and reduce accident severity Here are some of the most common advanced driver assistance systems and how they work

Automatic Emergency Braking: Uses sensors to detect when a frontal collision is imminent. The system alerts the driver and applies the brakes automatically if the driver doesn’t respond quickly enough. This technology can completely prevent some frontal crashes from occurring.
Lane Departure Warning: Uses cameras to monitor lane markings on the road. If the vehicle drifts out of its lane unintentionally, the system sends an alert. This helps prevent run-off-the-road crashes and sideswipes.
Blind Spot Monitoring Uses sensors to detect vehicles in adjacent lanes that may not be visible in side mirrors. When a vehicle enters the blind spot it alerts the driver usually via a light on the side mirrors. Blind spot monitoring helps drivers safely change lanes and merge.
Rear Cross Traffic Alert: Uses radar sensors to detect approaching vehicles when backing up that may be difficult for the driver to see. The system alerts the driver, or some models will even automatically brake to avoid backing into cross traffic.
Adaptive Cruise Control: Uses cameras, radar, and sensors to maintain a set following distance behind the car ahead. If that car slows down, so does the cruise control. This system helps prevent rear-end collisions.

Do Safety Features Lower Insurance Rates?

In theory, vehicles equipped with advanced safety technologies should cost less to insure. After all, the systems are designed to prevent accidents in the first place or reduce accident severity.

Several studies have shown safety features like automatic emergency braking and blind spot monitoring can reduce accidents substantially:

A study by the Insurance Institute for Highway Safety found blind spot monitoring lowers the vehicle crash rate by 14%.
Research by LexisNexis Risk Solutions showed a 27% reduction in bodily injury claims and a 19% reduction in property damage claims for vehicles with automatic emergency braking, blind spot monitoring and other ADAS features.
Analysis from Carnegie Mellon University estimated a 3.5% reduction in crash frequency from automatic emergency braking and other crash avoidance systems.

With proof advanced safety features prevent accidents, shouldn’t this translate into lower car insurance premiums? Not necessarily.

Insurers calculate premiums based on many factors beyond just accident likelihood. Repair costs also play a significant role in rates. Newer vehicles with lots of technology typically cost more to fix after a crash. Replacing sensors, cameras, and calibrating ADAS systems is expensive.

So while safety features may lower the frequency of accidents, the increased repair costs can offset some of those savings for insurance companies.

Insurers may consider discounts for vehicles with crash avoidance technology. But the premium impact is smaller than you may expect. Discounts typically range from 1% to 10% for passive safety features like airbags and anti-lock brakes. More research on actual claims experience with ADAS is needed before insurers offer larger discounts.

Tips for Finding the Lowest Car Insurance Rates

While leading safety features can potentially lower premiums slightly, they aren’t the only way to save. Here are some proven tips for finding the best car insurance rates:

Shop around: Compare quotes from at least 3-4 different insurers. Rates can vary dramatically between companies for the same driver.
Maintain good credit: In most states, insurers use credit-based insurance scores to set rates. Keeping your credit in shape can lower premiums.
Ask about discounts: Take advantage of every discount you qualify for. Common car insurance discounts include good driver, low mileage, multi-policy, and defensive driver discounts.
Raise deductibles: Choosing higher deductibles like $500 or $1,000 means you pay more out-of-pocket after an accident, but your premiums will be lower.
Limit coverage to what you need: Skip extras like rental reimbursement or roadside assistance if you don’t need them. But don’t skimp on liability and uninsured motorist coverage.
Pay annually: Paying policy premiums in full upfront rather than in monthly installments can score you a discount of up to 10%.

Focus more on these traditional ways to lower car insurance costs. View advanced safety features as an added bonus if they trim your premiums a bit. But don’t expect dramatically cheaper rates solely due to new vehicle technology. The insurance savings may be smaller than expected.

The Bottom Line

Advanced driver assistance systems that automate braking, keep you in your lane, and prevent collisions can enhance safety. But the impact on car insurance premiums is limited. Although accident frequency may decrease, costlier repairs counter some of those savings. Discounts for safety features typically range from 1-10%, not enough to dramatically lower your rates on its own. Use other proven methods like comparison shopping, maintaining good credit, and taking advantage of discounts to find the most affordable auto insurance coverage for your newer vehicle. Safety tech is just an added bonus.

Collision Warning & Blind-Spot Detection

Standard cars just got collision warning and blind-spot detection technology a few years ago, but luxury cars have had them for more than 10 years. When another driver gets too close to your car, collision warning lets you know with a sound or light that another car is coming, so you won’t have to use your collision coverage.

This network of radars and sensors helps to cut down on and get rid of most people’s blind spots. It can also be automatically synced with the brakes to stop the vehicle entirely to avoid crashing. It’s a really intuitive system that will come standard with more vehicles as the years go by.

An anti-lock braking system is among one of the most important features that’s ever been introduced to vehicles. They were first used on high-end cars in the middle of the 1900s and then spread to most car models by the early 2000s.

Because this new braking system cuts down on the space vehicles need to stop, it has helped keep many accidents from happening. When the road is wet or snowy and slippery, a firm push on the anti-lock brakes can release short bursts of braking instead of one pressure. This helps keep cars from sliding.

Your car insurance may cover damage from water, but anti-lock brakes will make it easier to get through the water.

Adaptive Cruise Control

There is a balance between safe and smart driving when adaptive cruise control and an anti-lock braking system work together. “Why don’t they just put on their cruise control?” we’ve all thought to ourselves on long road trips when the same car went by us ten times.

If all goes well, everyone will start using the newer technology in cruise control in the next ten years. But let’s be honest, some people will still refuse to use it. Sensors in adaptive cruise control can tell when traffic is slowing down or when you need to change lanes quickly to pass another car.

It then activates the gas or brake pedal, depending on which stage of your journey you’re in. It allows you to maneuver safely through traffic without turning off and resetting your cruise control.

An innovative approach to night driving has been the recent implementation of adaptive headlights. They work by bending light around turns so the driver can see what lies ahead.

Adaptive headlights are especially important for narrow, winding roads that don’t have any lights along them to keep accidents from happening at night. The speed of the car can tell the sensors how much light to send to the front lights of cars with adaptive headlights.

Do Safety Features Lower Car Insurance

FAQ

Is insurance cheaper for cars with safety features?

In fact, many car insurance providers offer significant discounts to drivers who own vehicles with certain safety features. These include things like anti-lock brakes, airbags, and anti-theft devices.

Are car safety features worth it?

Car safety features help minimize the chances of accidents and reduce driver and passenger injuries when collisions happen. Examples of standard safety features include airbags, anti-lock brakes and backup cameras, while more advanced features include forward collision warning and automatic emergency braking.

What are three factors that lower your cost for car insurance?

Common rating factors include age, location, driving history, credit score, and more. Put simply, the less risky your rating factors are, the cheaper your car insurance policy will be. Some auto insurance rating factors — such as driving record or vehicle type — have relatively sizeable impacts on car insurance costs.

Do car safety features reduce accidents?

It’s important to remember that safety features don’t replace the need for good driving habits. You should always make sure to drive with caution and obey all traffic laws. While these features can’t prevent accidents on their own, they are there to help you reduce your risk of car accidents and help keep you safe.

Do safety features lower your insurance?

Progressive and Bankrate both claim that the inclusion of safety features can lower your insurance. But this claim is based on the fact that insurers use Insurance Institute for Highway Safety ratings to determine the relative safety of particular cars.

Can car safety features save you money on insurance?

Only tried-and-true car safety features can save you money on insurance. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own.

Do auto insurance companies need more data on safety features?

Balber, of Consumer Watchdog, rejects the idea that the auto insurance industry needs more data on safety features. “Insurance companies have the data that they need, if they chose to look for it, to determine if these safety features are actually reducing accidents,” she says.

How much can you save with safety features?

The amount that you can save with safety features depends on your auto insurance company. For example, while half of the largest insurance companies offer discounts for anti-theft systems like a GPS tracker or a special alarm, GEICO offers savings of up to 23% if your car has anti-theft technology — which is high compared to other companies.